DTH broadcasting licence variable fees and interest provision treated as revenue expense u/s37(1), not s.35ABB

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....Variable licence fee paid to the Ministry for a DTH broadcasting licence was held not covered by s. 35ABB, since that provision applies only to capital expenditure for obtaining a licence to operate "telecommunication services," and DTH activity is broadcasting/distribution and not telecommunication as per TRAI definitions; consequently, the variable licence fee was allowable as revenue expenditure under s. 37(1), and the contrary reliance on telecom-licence precedent was rejected, directing allowance of the deduction. Provision for interest on outstanding/enhanced licence fee was treated as an ascertained contractual liability supported by the agreement, guidelines and demands, and was allowable under mercantile accounting; deletion of the disallowance was upheld. - ITAT....